German bond yields and most other eurozone rates hit multi-month highs

* Government bonds from the Eurozone periphery give tmsnrt.rs/2ii2Bqr

LONDON, Feb.15 (Reuters) – Most eurozone bond yields hit multi-month highs on Monday, with investors betting on a better economic outlook and accelerating inflation as oil prices peaked. high level in over a year.

Ten-year bond yields in Germany, France and the Netherlands all hit their highest since early September, while German 30-year bond yields hit an eight-month high.

A massive sell-off in major bond markets has picked up in recent sessions, as the coronavirus vaccine rollout and the US fiscal stimulus reinforce expectations of a strong economic recovery.

Benchmark yields on US Treasuries hit their highest levels since March Friday, pushing prices lower. This massive selloff, as well as the rise in Brent prices to highs above $ 63 a barrel, weighed on euro area debt markets on Monday.

The benchmark 10-year Bund yield in Germany rose 4 basis points to a 5-1 / 2 month high at -0.387%.

Its 30-year bond yield, up 20bp so far this month, hit an eight-month high of almost 0.13% – after trading in negative yielding territory a little while ago more than a week.

Across the eurozone, long-term bond yields in higher-rated markets such as the Netherlands and France rose 4 to 5 basis points on the day.

“The reflation sentiment remains alive and well, although there is a chance that the Bund will consolidate in the short term after the last liquidation,” Commerzbank strategist Rainer Guntermann said.

With the US bond markets closed for a holiday and parts of Asia closed for the Lunar New Year, trading in financial markets has been generally subdued.

Italian bonds continue to outperform their eurozone peers, but their yields also edged up on Monday, with the Italian 10-year bond yield rising 2 basis points on the day to 0.51% – still keeping in view the lowest records of last week.

Mario Draghi, the former head of the European Central Bank, was sworn in as Italian prime minister on Saturday to lead a unity government that must pull the country out of the coronavirus crisis and economic slump.

Politics was also a central concern in Spain, where separatist parties appeared poised to jointly win the majority of seats in Catalonia’s regional parliament. The election was seen as a test of the strength of the region’s independence movement at a time now dominated by the pandemic.